Today I received a newsletter from one of the major RE franchises and some very interesting info in there............ median prices, annual growth, last quarter growth and ROI percentages. Interestingly, some of the subjects discussed in these threads were shown in this newsletter and I pass on for anyone interested in buying in any of these locations....... . Frankston North Median $313k 12 month growth 1.4% Last quarter growth 5.02% Carrum Downs " $386k " 8.49% " 5.93% Jacana " $389,500 " 5.6% " 4.45% Heidelberg West " $596 k " 26.3% " (not shown) Wow!! look at Heidelberg West - it's similar in many ways to Frankston North but has a much higher median (think this may be the distance from the cbd factor at work) I've noticed that in HW lots of older housing commission houses (semi-detached and free standing) on large blocks are being knocked down and replaced by a couple of townhouses or existing house kept but another built behind.
As a generalization, all of Melbourne's cheaper outer suburbs are booming at the moment and have been for some time now. The simple reason is it's because they're still affordable to most people. Virtually anything with a median value of under $600k is doing very well at the moment. The only thing really driving this is affordability. People still want to buy property to live in or to invest but they can't afford middle or inner suburbs, so this is where they're going. All the credit tightening, all the APRA regulation has not changed demand, it's just changed the price point. At some point these locations will get to a price point where they're no longer viable. My guess is about $600k as that's where a lot of first home buyers drop out in Victoria. After that the outer suburbs will simply stagnate for years or even drop in value.
Yep. I have mentioned good ol' Heidelberg West a number of times. I looked at property in HW in 2007. I found some really bad pockets and not much potential that I could see. Over that time I think HW has outperformed Heidelberg Heights. Check out some recent sales, well over $1,000 per square metre: 1 Derna Street, Heidelberg West, Vic 3081 - Property Details 21 Pacific Drive, Heidelberg West, Vic 3081 - Property Details 11 Wewak Parade, Heidelberg West, Vic 3081 - Property Details 186 Oriel Road, Heidelberg West, Vic 3081 - Property Details That last one is $1,263 per square metre. Sensational!
..we are close to peak surely, would not want to be those holding the baby..good for those who jumped in early,beginning of rise..now is high risk because interest rates on rise and 600k cut off for FHB...we are here folks, lower undesirable hitting the mark
I feel Melbourne still has potential. especially the first home buyer segment who would be inclined towards the land and house packages at the lower end because they can build from scratch keeping their expectations aligned with that of the builder and keep the build under budget. A lot of areas still around 350k to 400k mark, land title wait periods nearly ranging from 6 months to 1year (without considering extensions/ delays), upcoming/ budding builders still seeing a lot of demand. North, west, north east, south, south west. you name the region and there is an area which is in demand and yargeted by a particular segment, even though the price rise had been significant. High number of immigrants, demand, affordability, lower entry levels, wait periods in land title availability, you cant go wrong if you dont overcapitalize and target a budding market. At least until the prices reach 420k to 450k in those areas. Lower end will always have a demand and people will keep moving out for a reasonable build cost. Regards
Property price growth in Melbourne tipped to slow sharply in 2017 Dr Wilson expects at least 10 per cent annual house price growth next year in the budget markets of Ardeer, Sunshine, Thomastown, Tullamarine and Watsonia. Domain Group chief economist Dr Andrew Wilson
I knew it was the cheapest last year though was surprised on the big jump (was expecting moderate growth) when I was looking around last year this was within the 500kish, now it is flown to the 700-800kish now for blocks that size. Goes to show distance to CBD is still a big consideration for investors and home owners alike.
I think thomastown will likely experienced a growth boost as reservoir now is getting more and more expensive.
